If you have lost your job, there are a number of tax issues that you may come across. How you deal with these issues can impact both your taxes and your finances. The following are typical issues you could experience, along with their tax treatment:
Employer relief has been issued for ACA reporting. Starting the 2015 tax year, Applicable Large Employers (ALEs) were required to file Forms 1095-C and 1094-C with the IRS. They were also required to provide a copy of the 1095-C to each of their employees. An ALE is generally an employer with 50 or more equivalent full time employees (EFTEs) in the prior year. Even though ALE’s with 99 or fewer EFTEs are not subject to the insurance mandate for 2015, they are subject to the 1094-C and 1095-C filing requirements for 2015.
Employer Relief and Due Date Requirement
This is the first year for this requirement. The IRS has decided to provide first year (2015) filing relief for Forms 1095-B and 1095-C. The due dates for furnishing these forms are extended as follows:
- The due date for providing the 2015 Form 1095-B and the 2015 Form 1095-C to the insured and employees is extended from February 1, 2016, to March 31, 2016.
- The due date for health coverage providers and employers to furnish the 2015 Form 1094-B and the 2015 Form 1094-C to the IRS is extended from February 29, 2016, to May 31, 2016 if not filing electronically.
- The due date for health coverage providers and employers electronically filing the 2015 Form 1094-B and the 2015 Form 1094-C with the IRS is extended from March 31, 2016, to June 30, 2016.
Those Who Cannot Meet the Original Deadline
The IRS is prepared to accept information reporting. For returns beginning in January 2016, employer relief is available for those who cannot meet the original deadlines are encouraged to furnish statements and file the information returns as soon as they are ready. This is true for other coverage providers, as well.
The information provided to individuals on their copy of Form 1095-B or 1095-C is generally used to confirm that the individual had minimum essential coverage. This allows them to avoid the penalty that applies when not covered for the full year. However, with the extension of the filing dates for these forms, individuals may not have the forms in hand before filing their 2015 returns. For 2015 only, individuals who rely on other information received from their coverage providers about their coverage for purposes of filing their returns do not need to amend their returns once they receive Form 1095-B or Form 1095-C or any corrections, according to the IRS.
Likewise, individuals who, when filing their 2015 income tax returns, rely upon other information received from employers about their offers of coverage for purposes of determining eligibility for the premium tax credit need not amend their returns once they receive their Forms 1095-C or any corrected Forms 1095-C.
Are you ready to file, but you don’t have your 1095-B or 1095-C Forms yet?
Alex Franch, BS EA is more than a tax advisor. Alex is a tax expert who can give you the tax advise you need. Worthtax provides ultra-convenient service and guaranteed pricing. We have locations in Quincy, Weymouth and Dedham. He can be reached at 781.849.7200 to answer your tax questions.
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Learn more information about 1095 forms here.